FOMC stands pat on interest rates, calls economy 'strong'

WASHINGTON (MarketWatch) - The Federal Reserve voted unamimously to leave a key U.S. interest rate unchanged, but the central bank also signaled more rates hikes are coming by upgrading its view of the economy to "strong" from "solid." In a statement, the Fed on Wednesday said the economy "has been rising at a strong rate." The central bank had used the word "solid" in June. The Fed also said both consumer spending and business investment "have grown strongly." Inflation, for its part, "remained near 2%,' the Fed noted after the end of its two-day meeting in Washington. The central bank has previously signaled it would raise rates twice more in 2018 by a quarter-point, with the next one widely expected in September. By the end of 2018 the Fed expects to lift its benchmark rate to an average of 2.4% from the current range of 1.75% to 2%.

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